Goldman Sachs Joins Morgan Stanley In Bitcoin ETF Race Across Wall Street

• Goldman Sachs filed for the Bitcoin Premium Income exchange-traded fund on Tuesday, which will offer Bitcoin exposure while generating a monthly yield.
• This move came days after Morgan Stanley’s spot Bitcoin exchange-traded fund launch.
• This also marks Goldman Sachs’ latest step in expanding its crypto-linked investment offerings for institutional clients.

Goldman Sachs (GS) on Tuesday made its most recent foray into the cryptocurrency market by submitting an application for a Bitcoin Premium Income Exchange-Traded Fund (ETF). 

In a post on X, Eric Balchunas said that the proposed ETF is intended to provide investors with exposure to Bitcoin (BTC) while also generating additional income via a premium-based strategy that will most likely include options or other yield-enhancing methods. The move underscores a larger trend among traditional financial institutions looking to broaden their crypto products beyond spot exposure.

Goldman's application comes only days after Morgan Stanley introduced its own spot Bitcoin ETF, the Morgan Stanley Bitcoin Trust (MSBT), which began trading on the New York Stock Exchange (NYSE) earlier this month. The fund, which has a competitive management fee of 0.14%, is the first Bitcoin ETF from a major US bank-affiliated asset manager and gives Morgan Stanley customers direct Bitcoin exposure.

MSBT’s price was up over 1% in morning trade. On Stocktwits, retail sentiment around MSBT dropped to ‘neutral’ from the ‘bullish’ zone, while chatter remained at ‘high’ levels over the past day. 

Biggest Institutional Critic Of Bitcoin

Goldman Sachs was one of the most outspoken opponents of Bitcoin, claiming in a 2020 presentation that the cryptocurrency was "not an asset class" and "not a suitable investment."

The bank raised a number of issues at the time, citing Bitcoin's poor cash flow relative to more conventional assets like bonds and its inability to generate profits tied to the expansion of the world economy. Additionally, Goldman contended that Bitcoin's erratic correlations with other assets prevented it from consistently offering benefits related to diversification.

The company said Bitcoin did not adequately protect against inflation and emphasized its excessive volatility, citing a 37% one-day decline in March 2020. Furthermore, Goldman cautioned that speculation was the main driver of the cryptocurrency market, saying that assets whose value largely depends on others paying a higher price are not good investments.

Bitcoin averaged around $11,000 in 2020, though it ended the year near $29,000 after a sharp late-year rally. Bitcoin’s price traded at around $75,400 in midday trade on Tuesday, up over 4% in the last 24 hours. On Stocktwits, retail sentiment around BTC remained in ‘bullish’ territory and chatter stayed at ‘high’ levels over the past day.

Read also: Victims Of FBI's Most Wanted 'Cryptoqueen' In $4B Scam Set For Compensation After A Decade

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